The U.S. Department of Transportation issued a final rule Friday, June 6, declaring that fuel economy standards set during the Biden administration violated federal law by factoring in electric vehicles, a move that lays the groundwork for looser future requirements.
Transportation Secretary Sean Duffy said the rule corrects what the department calls an “illegal regulation” and affirms its authority to reset how Corporate Average Fuel Economy, or CAFE, standards are set. While the rule doesn’t change current requirements, it clarifies how NHTSA will interpret its legal authority in future rulemaking.